Korea to support domestic auto parts companies

May 26, 2011

The Korean government is giving a helping hand to Korean auto parts manufacturers to help them penetrate overseas markets.

The Ministry of Knowledge Economy announced on May 23 that it will build "Auto Parts Parks" in major global auto markets around the world. These parks will work as both offices and warehouses for Korean and global companies to meet and take care of business.

Parks are currently under construction in Chicago in the United States and Frankfurt, Germany, with plans to open more in Detroit, Paris and Beijing.

The ministry is also working a new distribution system for auto parts for Korea, China, and Japan to improve efficiency.

The new system will allow all three countries to combine shipments from different manufacturers, and is expected to drastically reduce the amount of time needed to get individual parts. The current system needs at least a month to ship parts from Korea and Japan, but the new distribution system should cut this time down to a mere four days.